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A U.S. Appeals Court’ Rejects An NLRB Rule Locking New Owners Into’ Union Bargaining

Published Wednesday, July 29, 2026
by Labor News Story Link To Human Resources Director
A U.S. Appeals Court’ Rejects An NLRB Rule Locking New Owners Into’ Union Bargaining

Regielyn Santiago at Human Resources Director reports a Federal Appeals Court has thrown out a National Labor Relations Board (NLRB) rule that forced new business owners to bargain with an inherited Union, even without majority support. The U.S. Court of Appeals for the District of Columbia Circuit ruled the NLRB's "successor bar" is inconsistent with Federal Labor Law. The rule forced a company that buys a business to recognize and bargain with the existing Union for up to a year - even if most workers no longer backed it. The Court found the NLRB had no authority to impose it. The case involved a hospital that became a successor employer in 2017. The incumbent Union claimed to represent Staff across five Bargaining Units. Two of those Units had never had a contract and the deals covering the other three had expired more than four years before the sale. But the hospital said it later obtained evidence that a majority of Employees in each Unit - and everyone in one Unit - had rejected the Union. It refused to bargain and withdrew recognition.

To Continue Reading This Labor News Report, Go To: Appeals court rejects NLRB rule locking new owners into union bargaining | Human Resources Director

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